Sonic Money is a sounding board for my personal investments strategies and stock research. It will be updated in real time. As I make moves in these financial waters you will be able to either join in or watch from the sidelines. Either way my goal is to make money every day through picking long term stock winners, shorting stocks that shouldn't be posting gains, betting on sectors that are experiencing tremendous growth, and posting profits that make people take notice.

Saturday, February 2, 2008

Microsoft + Yahoo = Oracle + BEA System

I am betting on the fact the hostile takeovers work like most negotions. One person offers, the other person says no way, and then they come to some consensus.

I am also betting that this will take some time. I am reviewing what happened with Oracle's hostile takeover of BEA systems and I am seeing a interesting pattern. That after the euphoria of the initial offer, the stock tanked and then went to the negotiated price.

Look at this chart I got online - the tab KL is where the unsolicited offer was made. Notice the price after months of negations , then they approve the merger at point A.